) declared first-quarter 2013 financial results, where the bottom
line met the Zacks Consensus Estimate but the top line fell short
of the same.
Net income from continuing operations in the reported quarter
was $473 million or 93 cents per share compared with $591 million
or $1.06 per share in the prior-year quarter. However, adjusted
EPS of 91 cents was in line with the Zacks Consensus Estimate of
Total revenue in the reported quarter was $3,314 million, down
16% year over year and also below the Zacks Consensus Estimate of
$3,547 million. Poor performance of the Filmed Entertainment
business has resulted in the slowdown of revenue growth.
Quarterly operating income was $797 million, down 22% year over
During the reported quarter, Viacom bought 13.3 million common
shares for $700 million. At the end of the first quarter of
fiscal 2013, Viacom had $671 million in cash & cash
equivalent and $8,371 million in outstanding debt on its balance
sheet compared with cash and cash equivalent of $848 million and
outstanding debt of $8,131 at the end of fourth quarter of fiscal
2012. Debt-to-capitalization ratio at the end of the reported
quarter was 0.54 compared with 0.52 at the end of fiscal
Media Networks Segment
Quarterly revenue of $2,394 million inched down 2% year over
year, mainly hurt by weaker advertising revenues. Quarterly
operating profit was $1,021 million, down 9% year over year.
However, domestic affiliate revenues and worldwide affiliate
revenues rose 4% and 3%, respectively. Domestic and worldwide
advertising revenue dropped 6% year over year.
Filmed Entertainment Segment
Quarterly revenue dropped 37% year over year to $975 million,
hamstrung by lack of popular movie releases and lower home
entertainment title releases. Quarterly operating loss was $142
Global Theatrical revenue fell by a whopping 42% year over
year primarily due to poor movie releases than the year-ago
quarter. Worldwide Home Entertainment slumped 43% coupled with
steep fall in television license fees by 24%. However, Worldwide
Filmed Entertainment ancillary revenues fell by 14%.
Currently, Viacom has a Zacks Rank #3 (Hold).
Other Stocks to Consider
Certain other companies belonging to the same media sector
that are yet to report financial results are
Time Warner Inc.
). All the three have a Zacks Rank #3 (Hold).
CBS CORP (CBS): Free Stock Analysis Report
NEWS CORP INC-A (NWSA): Free Stock Analysis
TIME WARNER INC (TWX): Free Stock Analysis
VIACOM INC-B (VIAB): Free Stock Analysis
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